Texas 2025 - 89th Regular

Texas Senate Bill SB856 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Flores S.B. No. 856
2		-
3		-
	2	+	(In the Senate - Filed January 22, 2025; February 13, 2025,
	3	+	read first time and referred to Committee on Economic Development;
	4	+	March 18, 2025, reported favorably by the following vote: Yeas 5,
	5	+	Nays 0; March 18, 2025, sent to printer.)
	6	+	Click here to see the committee vote
4	7
5	8
6	9		A BILL TO BE ENTITLED
7	10		AN ACT
8	11		relating to the use of the skills development fund by certain
9	12		entities.
10	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	14		SECTION 1. Section 303.001(a), Labor Code, is amended to
12	15		read as follows:
13	16		(a) The purpose of this chapter is to remove administrative
14	17		barriers that impede the response of public community and technical
15	18		colleges, community-based organizations, local workforce
16	19		development boards, the Texas A&M Engineering Experiment Station,
17	20		and the Texas A&M Engineering Extension Service to industry and
18	21		workforce training needs and to develop incentives for public
19	22		community and technical colleges, community-based organizations,
20	23		local workforce development boards, the Texas A&M Engineering
21	24		Experiment Station, and the Texas A&M Engineering Extension Service
22	25		to provide customized assessment and training in a timely and
23	26		efficient manner.
24	27		SECTION 2. Section 303.002(b), Labor Code, is amended to
25	28		read as follows:
26	29		(b) A public community or technical college, the Texas A&M
27	30		Engineering Experiment Station, or the Texas A&M Engineering
28	31		Extension Service may recover customized assessment and training
29	32		costs incurred by the college, station, or service [institution]
30	33		if:
31	34		(1) there is an actual or projected labor shortage in
32	35		the occupation in which training is provided that is not being met
33	36		by an existing institution or program in the area; and
34	37		(2) the wages at the time of job placement for
35	38		individuals who successfully complete customized training at the
36	39		public community or technical college, the Texas A&M Engineering
37	40		Experiment Station, or the Texas A&M Engineering Extension Service
38	41		are equal to the prevailing wage for that occupation in the local
39	42		labor market area.
40	43		SECTION 3. Sections 303.003(b), (f), (g), and (h), Labor
41	44		Code, are amended to read as follows:
42	45		(b) The skills development fund may be used by public
43	46		community and technical colleges, community-based organizations,
44	47		local workforce development boards, the Texas A&M Engineering
45	48		Experiment Station, and the Texas A&M Engineering Extension Service
46	49		as start-up or emergency funds for the following job-training
47	50		purposes:
48	51		(1) developing customized training programs for
49	52		businesses and trade unions; and
50	53		(2) sponsoring small and medium-sized business
51	54		networks and consortiums.
52	55		(f) The Texas A&M Engineering Experiment Station and the
53	56		Texas A&M Engineering Extension Service shall focus the station's
54	57		or service's training activities under this chapter on programs
55	58		that:
56	59		(1) are statewide in nature; or
57	60		(2) are not available from a local junior college
58	61		district, a local technical college, or a consortium of junior
59	62		college districts.
60	63		(g) This section does not prohibit the Texas A&M Engineering
61	64		Experiment Station or the Texas A&M Engineering Extension Service
62	65		from participating in a consortium of junior college districts or
63	66		with a technical college that provides training under this chapter.
64	67		(h) A community-based organization may apply for money to
65	68		participate in a training program only in partnership with a
66	69		community and technical college, the Texas A&M Engineering
67	70		Experiment Station, or the Texas A&M Engineering Extension Service.
68	71		A community-based organization providing services regulated by the
69	72		state shall provide evidence of any certification, license, or
70	73		registration required by law.
71	74		SECTION 4. Section 303.004, Labor Code, is amended to read
72	75		as follows:
73	76		Sec. 303.004. FUND REVIEW; REPORT BY CERTAIN WORKFORCE
74	77		TRAINING PROVIDERS REQUIRED. (a) The Texas Higher Education
75	78		Coordinating Board shall review all customized training programs
76	79		biennially to verify that state funds are being used appropriately
77	80		by public community and technical colleges, the Texas A&M
78	81		Engineering Experiment Station, and the Texas A&M Engineering
79	82		Extension Service under this chapter.
80	83		(b) Not later than October 1 of each even-numbered year, the
81	84		Texas A&M Engineering Experiment Station, the Texas A&M Engineering
82	85		Extension Service, and each public community or technical college
83	86		that provides workforce training under this chapter shall:
84	87		(1) conduct a review of the station's, service's, or
85	88		college's training programs to:
86	89		(A) determine the effectiveness of the programs
87	90		in improving the wages of participants who complete the programs;
88	91		and
89	92		(B) identify strategies for improving the
90	93		delivery of workforce training in order to more effectively impact
91	94		economic development in this state; and
92	95		(2) submit to the commission a detailed written report
93	96		summarizing the results of the review for inclusion by the
94	97		executive director in the report to the governor and the
95	98		legislature required by Section 303.006(c).
96	99		(c) If the Texas A&M Engineering Experiment Station, the
97	100		Texas A&M Engineering Extension Service, or a public community or
98	101		technical college fails to submit a report required by Subsection
99	102		(b)(2):
100	103		(1) the station, service, or college must refund to
101	104		the comptroller any unexpended state funds received by the station,
102	105		service, or college under this chapter for the state fiscal
103	106		biennium in which the report was due; and
104	107		(2) the commission may not award any additional grant
105	108		to the station, service, or college under this chapter until the
106	109		station, service, or college has complied with that reporting
107	110		requirement.
108	111		SECTION 5. This Act takes effect September 1, 2025.
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